A Study On Credit Risk Management Of Commercial Bank

As our country joins WTO formally , by 2006, our country will cancel all restrictions and foreign capitals bank is in equal status with us. It indicates the incorporation of our economy into the world and the participation of our economy in globalization competition. But the competition of modern bank lies in risk management and profit rather than fund and scale. If risk management level can not get on, it can not guarantee to make profits in spite of the large assets scale. Any carelessness of risk management may forfeit the whole bank and even jeopardize the banking of our country , so it especially has outstanding realistic meanings to put emphasis on improving the risk management level of commercial bank at present.In the risks of the bank, the credit risk has been in the position of standing in the breach all the time. Through studying we find that credit risk is still in especially important status among risks of commercial bank of our country. It is the risk that we need to pay close attention to at first.Just because of this, the thesis analyses the credit risk reasons inside and outside the commercial bank from actual conditions of our commercial bank, focusing on the enterprise financing channel , enterprise pressure in paying the debts, administrative interference, social credit management system, special property relations, administration institutional framework , the internal controlling system, credit risks administrative skill ,etc. It puts forward the optimization schemes for the credit risks to the question that exist at present and optimizes the countermeasure for the development of our commercial bank in a healthy way .First, it is the first task to improve the risk management technic. According to IRB of " New Basel Accord" and through the case study, the thesis points out the shortcoming of the two-dimentional grading system of the commercial bank at present --The customer grades and grades with the liability (the loan risk classification): too thick of the grade dividing, no unity of standard, being not comparable with each other, more qualitative factors, no corresponding with the PD(propobility of default) and LGD(loss given default). It puts forward the corresponding improvement measure for the implementation of IRB afterwards. It also comes out to substantiate the database , perfect information gathering and process system progressively in order to lay the solid foundation for the use of foreign advanced credit risks administrative skill such as CreditMetrics model , At last, the thesis points out the developing direction of capital risk management --New Basel Accord.Second, the thesis has proposed the strengthening measurements in credit risk management: perfecting the management system of the risk;improving the ability in the credit risks controlling; perfecting the internal controlling system; establishing the risk management culture; strengthening the risk compensation mechanism of the loan; strengthening the supervision of the Committee on Banking Supervision and the restraint of the market; improving enterprise's credit state; standardizing the behavior of the accounting firm.